How Much Does It Cost to Charter a Yacht?
How Much Does It Cost to Charter a Yacht?
For many, a yacht charter represents the pinnacle of luxury and an unparalleled way to escape. It’s a glamorous experience that offers endless possibilities—sailing along the French Riviera, enjoying starlit dinners in the Caribbean, or even exploring the untamed beauty of Antarctica. With the entire world at your fingertips, the only boundaries are your imagination and the weather!
However, before you embark on this luxurious journey, it’s crucial to understand the costs involved, what’s included in the pricing, and what additional expenses you might encounter.
What is a Yacht Charter?
First, let’s clarify what we mean by a “yacht.”
While definitions vary, yachts are generally considered leisure vessels of a certain size, typically over 25 meters in length. These yachts are crewed by professionals responsible for maintaining the vessel and ensuring guests are well taken care of. To qualify for charter, the yacht must be commercially registered (or an equivalent based on its flag state). Unlike cargo ships or service vessels, charter yachts are designed exclusively for leisure. They can either be motor yachts or sailing yachts.
Chartering a yacht offers a seamless experience tailored to your desires—whether you have a specific destination in mind or simply want to enjoy the luxurious features of a particular yacht. Companies like Soreto Yachting specialize in curating your dream vacation with the help of experienced Charter Brokers.
Understanding Yacht Charter Costs
The cost of chartering a yacht depends on several factors, and it’s important to work with a Charter Broker who can provide a detailed breakdown of what’s included and any additional expenses you might incur. Here are the key elements to consider:
INCLUDED IN THE LISTED RATE
1. BASE CHARTER FEE
The base charter fee represents the cost of renting the yacht itself. This typically includes the hire of the yacht, the crew’s salaries, and basic insurance coverage.
This rate, usually advertised as a weekly fee, varies based on several factors:
• Yacht Size and Type: Larger and more advanced yachts often command higher rates.
• Age and Reputation: Newer yachts or those with renowned designs tend to be pricier.
• Features and Capabilities: Yachts equipped for ocean crossings or with extensive amenities will cost more.
Seasonality
Just like land-based vacations, yacht charters have high and low seasons. Popular events, such as the Monaco Grand Prix or Cannes Film Festival, can also influence charter rates, especially in hotspots like the French Riviera.
Charter Agreements
The terms of your charter will depend on the region and the agreement used. The MYBA Charter Agreement (widely used in the Mediterranean) includes the yacht hire, crew salaries, water sports equipment, and basic onboard services. However, additional costs—such as guest provisions, fuel, and docking fees—are typically covered by the Advance Provisioning Allowance (APA).
Some yachts operate under different agreements, so your Charter Broker will clarify the specific terms for your booking.
ADDITIONS TO THE CHARTER FEE
2. ADVANCE PROVISIONING ALLOWANCE (APA)
The APA covers expenses not included in the base rate, such as:
• Guest food and drinks
• Fuel for cruising and onboard equipment
• Docking fees
• Port taxes and shore-based utilities
This allowance usually amounts to 25–35% of the base charter fee. Any unused funds are refunded to you at the end of the charter.
Fuel Costs
Fuel expenses depend on your cruising distance, speed, and use of onboard equipment like toys and tenders. Even when anchored, power generators consume fuel, adding to the overall cost.
Docking and Port Fees
Also referred to as dock fees, these costs depend on your location and the time of year. Major events, such as the Monaco Grand Prix, can significantly increase fees, as can the difference between high and low seasons.
At the end of the charter, the Captain will provide a detailed account of expenses. Any outstanding balance must be settled by the Charterer, while unused funds will be refunded upon disembarkation or may be allocated towards the crew’s gratuity if desired.
3. VAT AND LOCAL TAXES
Taxes are charged based on the yacht’s base fee and vary by region. For example, France applies a 20% VAT, while the Bahamas charges a 4% local tax.
4. DELIVERY FEES
Repositioning fees can apply if the Charter party requests to begin or end their trip at a location that isn’t part of the yacht’s usual base or planned itinerary.
5. CREW GRATUITY
Finally, a crew gratuity is typically given to the Captain at the end of the charter to be distributed among the crew. While this is entirely at the Charterer’s discretion, industry standards suggest 5-15% of the charter fee.
6. SECURITY DEPOSIT
In some cases, a refundable security deposit may be required to cover any damages caused during the charter. This is more common for newer yachts, charters involving children or pets, or high-profile events like the Monaco Grand Prix.
Making Your Yacht Charter Unforgettable
While chartering a yacht involves multiple costs, these expenses contribute to crafting an extraordinary experience. With the expertise of your Charter Broker and the dedication of the yacht’s crew, your voyage is designed to be unforgettable.
If you’re ready to embark on your ultimate luxury adventure, Soreto Yachting can connect you with a Charter Expert who will tailor the perfect escape for you.
Contact us at hello@soretoyachting.com or (+386) 69 605 250 to begin your unforgettable journey.
